Egypt Oil and Gas Midstream Market - Growth, Trends, and Forecasts (2020-2025)

The market for the Egypt oil and gas midstream market is expected to grow at a CAGR of approximately 2% during the forecast period of 2020-2025. Factors such as increasing investment in the sector and increasing production of oil and gas are expected to boost the demand for the Egypt oil and gas midstream market during the forecast period. However, oil consumption in the country has declined steeply in 2017-2018, which is expected to impede further growth in the market.

• Egypt has an extensive pipeline network all over the country, especially near the Nile river, where most of the population of the country lives. New pipelines are in the proposal stage and are expected to be completed in the forecast period.
• Exploration and production of gas fields in the East Mediterranean are expected to become an opportunity for the companies working in the oil and gas midstream industry as more pipeline and storage infrastructure is expected to be required in the near future.
• A significant increase in the production of gas is expected to be the most prominent driver of the market. In addition to this, investment in the oil and gas is also likely to contribute to the rise in the growth of the sector.

Key Market Trends

Pipeline Sector to Witness Growth

• As of 2019, the total length of major gas pipeline infrastructure in the country is around 2700 km. New projects have been proposed that are expected to increase the growth in the sector further.
• In 2019, Cyprus-Egypt gas pipeline is in proposal stage, and is expected to be laid from Cyprus offshore gas field to the Damietta Segas LNG Terminal, Egypt. The length of the proposed pipeline is expected to be approximately 310 km. The pipeline is expected to promote further growth once fully completed.
• The oil production increased in the country, by 1.6%, from 32.2 million tonnes in 2017 to 32.7 million tonnes in 2018. The oil consumption in the country decreased, by 6.4%, year on year, from 39.2 million tons of oil equivalent (mtoe), in 2017 to 36.7 mtoe, in 2018. Increase in production of oil requires transportation of oil that provides boost for the midstream market.
• Hence, pipeline capacity is expected to increase slightly in the forecast period due to an increase in the production of oil and rising investment in the sector.

Increasing Production of Natural Gas to Drive the Market

• The country during the 2017-2018 period has seen a significant increase in the production of natural gas. It is expected that the country may invest further and boost its growth in the midstream sector to increase the overall profits.
• Production of natural gas increased in the country, by 20.0% from 42.0, Million tonnes of oil equivalent in 2017 to 50.4 Million tonnes oil equivalent, in 2018. Consumption of gas in Egypt increased by 6.5%, from 48.1 million tonnes of oil equivalent (mtoe), in 2017 to 51.2 mtoe, in 2018. The increase in natural gas production is expected to provide a boost to the oil and gas midstream sector.
• West Nile Delta LNG Terminal is in construction, in 2019. The Terminal is expected to have a capacity of 1.4 billion cubic feet. Due to some technical issues, the completion of the terminal has delayed.
• The Egypt oil and gas midstream industry is expected to grow slightly in the forecast period due to the expected significant increase in the production and consumption of gas and an increase in the investment into the pipeline and LNG terminals infrastructure in the country.

Competitive Landscape

The Egypt oil and gas midstream market is moderately consolidated. Some of the major companies include Egyptian Natural Gas Holding Company, Eni S.p.A, Royal Dutch Shell PLC, Egyptian General Petroleum Corporation, and BP PLC.

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